Question No 45 Chapter No 18 – USHA Publication 11 Class

Question No 45 Chapter No 18

Question No 45 Chapter No 18

Goods are withdrawn for business and personal use

45. The following is the trial of Chris Gayle as at 31st March 2018:

Ledger Accounts Dr.  Ledger Accounts Cr
Input IGST  16,000 Capital 80,000
Input CGST 8,000 Return Outward 7,000
Input SGST 8,000 Creditor 15,000
Purchases 4,16,000 Sales 5,25,000
Debtors 50,000 Bank overdraft 17,000
Sale return 6,000 Output IGST 9,000
Opening Stock 18,000 Provision for Bad debts 4,000
Cash in hand  30,000 Commission Received 18,000
Investment 18,500 Output CGST 2,000
Furniture 30,000 Output SGST 2,000
Machinery 65,000    
Salaries 20,000    
Carriage inwards 3,000    
Bad debts 4,500    
Lighting 3,500    
Insurance Premium 6,000    
Royalty on Production 1,000    
  6,79,000   6,79,000

Prepare Trading and Profit & loss account for the year ending 31st March 2018 and balance sheet as at that date after considering the following adjustments:
(i)Stock on 31st March 2018 (cost Rs 45,000 ; Market Price Rs 45,000)
(ii)Goods returned by customer not recorded in sale return book (sale value Rs 8,000 plus 6% CGST and 6% SGST
(iii)Create Provision for bad debts @5% on debtors
(iv)Insurance premium includes premium paid for a year Rs 2,000 on a policy expiring on 30th June 2018
(v)Goods were stolen from the costing Rs 12,000( originally purchased at 6% CGST and SGST 6% ). The insurance company admitted a claim for Rs 12,500

 

The solution of Question No 45 Chapter No 18:-

Trading A/c
Particular
Amount Particular
Amount
To Opening stock A/c   18,000 By Sale A/c 5,25,000  
To Purchases A/c 4,16,000   Less: return 14,000 5,11,000
Less: Return 7,000        
Less: Goods Stolen 12,000 3,97,000 By Closing Stock A/c   42,000
To Carriage Inward A/c   3,000      
To Royalty on Production A/c   1,000      
To Gross Profit A/c   1,34,000      
    5,56,000     5,56,000

 

Profit/Loss A/c
Particular
Amount Particular
Amount
To salaries   20,000 By Gross Profit A/c   1,34,000
To Lighting   3,500 By Commission received A/c   18,000
To Insurance premium 6,000        
Less: Advance Insurance 500 5,500      
To bad debts w/off 4,500        
Add: new provision 2,052        
Less: Old provision 4,000 2,552      
To Loss on goods stolen    940      
To Net profit A/c   1,19,508      
    1,52,000     1,52,000

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 80,000   Debtors  50,000  
Add: Net Profit 1,19,508 1,99,508 Less: Sale return 8,960  
Creditor   15,000 Less: provision 2,052 38,988
Bank loan   17,000 Cash at hand   5,500
      Investment   18,500
      Furniture   30,000
      Machinery   65,000
      CGST Recoverable   5,760
      SGST Recoverable   5,760
      IGST Recoverable   7,000
      Closing Stock   42,000
      Prepaid insurance   500
      Insurance Company(claim)   12,500
    2,31,508     2,31,508

Working Note:-
Calculation of GST

Output CGST on 31st March 2018 = 2,000
Less: CGST on goods return = (480)
  = 1,520
     
Output SGST on 31st March 2018 = 2,000
Less: CGST on goods return = (480)
  = 1,520
     
Input CGST on 31st March 2018 = 8,000
Less: CGST on goods stolen = (720)
    7,280
     
Input SGST on 31st March 2018 = 8,000
Less: CGST on goods stolen = (720)
  = 7,280
     
Output CGST = 1,520
Less: Input CGST = 7,280
CGST payable = 5,760
     
Output SGST = 1,520
Less: Input SGST = 7,280
SGST payable = 5,760
     
Output IGST = 9,000
Less: Input IGST = 16,000
IGST Recoverable = 7,000

Journal Entry of Accrued Rent

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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